EPFO wage ceiling raised to ₹25,000, over 51 lakh more employees to gain coverage

The Union government on Wednesday approved a proposal to raise the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from ₹15,000 to ₹25,000 a month, a move expected to bring more than 51 lakh additional employees within the statutory social security framework.

The higher ceiling will cover employees earning between ₹15,000 and ₹25,000 a month, extending access to provident fund savings, pension benefits under the Employees’ Pension Scheme (EPS) and insurance protection through the Employees’ Deposit Linked Insurance Scheme (EDLI), subject to applicable provisions.

Higher ceiling aimed at widening social security

The government said the decision is intended to strengthen long-term retirement security, support the formalisation of employment and widen access to portable statutory social security benefits.

It said the latest revision takes into account sustained wage growth, rising incomes and the expansion of formal employment since the previous revision.

The EPFO wage ceiling had remained unchanged between 2004 and 2014 before being raised to ₹15,000 in September 2014. The latest increase marks the first revision since then.

Government outgo estimated at ₹11,339 crore annually

The annual government expenditure following the enhancement is estimated at about ₹11,339 crore, compared with the existing annual budgetary support of around ₹10,250 crore.

Over five years, the estimated expenditure is expected to be about ₹56,696 crore, according to the government release.

The measure will expand mandatory coverage to a section of workers who currently earn above the existing ₹15,000 ceiling but below the revised threshold.

Broader EPFO expansion underway

The wage ceiling decision comes as the government is also pursuing measures to expand EPFO coverage. The Employees’ Enrolment Campaign 2026 provides employers with a one-time opportunity to voluntarily enrol eligible employees who remained outside EPF coverage between April 1, 2009 and March 31, 2026. The campaign is scheduled to remain open until October 31.

The government has also been working to expand EPFO registration and improve regional coverage, including through online registration and auto-registration mechanisms for eligible new companies.

The revised wage ceiling is part of the broader effort to bring more workers into formal social security arrangements and extend provident fund, pension and insurance benefits to a larger section of employees.